Mrs. Varang Chaiyawan, Director and Deputy Chief Executive Officer, Thai Life Insurance Public Company Limited (“TLI”) announced the results for the first half of the year (January-June 2022), stating first year premiums amounted to THB 6,414 million, rising by 23%. Total premiums were THB 40,833.10 million. The Company gained the market share of 14.2% and first-year premium growth through all channels, e.g. insurance agents, partnerships and others such as telesales, especially through partnership channel with over 85% growth.
TLI recorded total income of THB 51,872 million, which increased by 2.2%. Net profit was THB 5,812 million, which is comparable to the first half of 2021. Meanwhile, the Company has maintained capital adequacy ratio (CAR) at 319%, which was higher than 140% required by the Office of Insurance Commission.
“The Company has witnessed an increase in the new business premiums. Normally, first-year premiums have additional expenses for new policies, but the profit will be recognized in the following years. Moreover, TLI value of new business (VONB) stood at THB 3,301 million in the first half of 2022, up 24%, primarily due to the remarkable growth in first-year premiums” Mrs. Varang said.
The Company has total assets of THB 533,110 million as of June 30, 2022, with the investment assets of THB 515,741 million and return on investment (ROI) of 3.91%, increased slightly from 2022. This resulted from rising interest rates, which would create a positive impact on the life insurance business.
Mrs. Varang added, “The recent COVID-19 pandemic outbreak did not significantly affect the operations. Even though the expenses claims have arisen, the coverage were only based on the riders for health insurance and the compensation of income loss due to hospitalization. The Company does not provide casualty insurance with COVID-19 lump-sum payments.”
For the second half of this year, Thai Life focuses on improving profitability under the changing business scenarios and the products that are profitable in the long run, such as investment-linked product, participating product as well as health insurance to be in line with the current consumer trends. The Company aims at developing market expansion of both current insured and the new customers, which will engage high-net-worth customers and working-age customers. TLI also focuses on expanding distribution channels through its digital platform and the partners with online sales platform to reach customers quickly and conform to the new normal.
“The Company is committed to offer comprehensive products in order to become the smart solutions for all questions regarding life insurance, health insurance and personal financial planning or a “Life Solutions Provider” to meet the personalized need of the insured and are striving for the improvement of services beyond life insurance, such as Health Care Solutions and the services that facilitate transactions such as Thai Life Insurance application. TLI also adjusts its business strategies for products, services, distribution channels, personnel, and technology, as well as the operations for thorough preparation to respond and adapt to the economic changes and fluctuation” Mrs. Varang said.